The David Greene Show A Marine’s $100K Mistake You Need to Hear | Episode 27
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Dec 31, 2024 Adam Whitney, a 20-year veteran of the US Marine Corps and real estate investor, shares a cautionary tale from his challenging investment deal in Alabama. What began as a promising opportunity quickly turned into a financial nightmare, with over $100,000 in unanticipated costs. He discusses how septic tank issues, a broken boat dock, and a failed exit strategy derailed his plans. Adam's insights on market unpredictability, valuation mistakes, and the importance of cash reserves serve as critical lessons for aspiring real estate investors.
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Nightmare Deal in Alabama
- Adam Whitney, a Marine, shared a real estate deal gone wrong in Fairhope, Alabama.
- It involved a canal-front property with a seemingly good ARV, initially intended for wholesaling.
Failed Wholesale Attempt
- Wholesaling the property failed due to lack of local expertise and buyer network.
- Trusting the agent's higher ARV over his own data-driven estimate was a mistake.
Rehab Cost Overruns
- Rehab costs spiraled from an estimated $45,000 to $85,000 due to unexpected issues.
- A nicked septic system required complete replacement, incurring significant extra costs.